Angling Direct profits hit by flooding despite 26.5% spike in revenues

Fishing tackle and equipment retailer Angling Direct has said winter flooding has impacted profits despite reporting a 26.5% increase in revenues.

In its pre-close trading update ending 31 January, the company saw in-store sales increase by 41.3% to £27.9m, with sales up 12% on a like-for-like basis.

The company revealed online sales increased by 13.3% to £25.2m compared with the same period last year attributed to “continued developments” at the company’s e-commerce platform.

It added the company’s German, French and Dutch websites, which make up the group’s core European markets, increased sales by 24.6%, 70.9% and 86.7% respectively.

Total international sales also increased by 7.6% to £5m, accounting for 19.9% of total online sales during the year, compared with 20.9% in 2019.

However, the company said trading since Christmas was “disappointing” as profits have been affected by “exceptional winter flooding”

Angling Direct said :“Notwithstanding the strong growth the company has delivered this year, a disappointing trading period, post-Christmas, influenced by exceptional winter flooding, has impacted profits.

“The lower levels of fishing activity meant that the higher margin, consumable products, were hit disproportionately. In addition, a more prudent approach has been taken to some legacy costs, which, taken together, lead the company to believe that it will deliver a pre-IFRS 16, EBITDA loss of no more than £500,00.”

It added: “The company continues to have a strong balance sheet and held cash of £5.9m at the 31 January 2020.”

In this period, Angling Direct added 10 new stores during the period, including two acquisitions, taking the total number of stores to 34.